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Suppose a financial manager buys call options on 69,000 barrels of oil with an exercise price of $121 per barrel. She simultaneously sells a put
Suppose a financial manager buys call options on 69,000 barrels of oil with an exercise price of $121 per barrel. She simultaneously sells a put option on 69,000 barrels of oil with the same exercise price of $121 per barrel. Consider her gains and losses of oil prices are $94, $91, $99, $121, and $124. What if oil futures prices are $127.36 per barrel at expiration? (Do not leave any empty spaces; input a 0 wherever it is required. Negative answers should be indicated by a minus sign. Omit $ sign in your response.)
Market price | $94 | $91 | $99 | $121 | $124 | $127.36 |
Payoffs per barrel | $ | $ | $ | $ | $ | $ |
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